What is PDC Full Form?

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PDC full form

The PDC full form is Post Dated Check. An issuer gives this check to the recipient as a form of payment which is done in advance. A PDC follows the same format as a regular check. However, there are a few differences, the date you indicate in the upper right-hand corner of the check. The PDC includes a date for the future and will be deposited on that date while in the case of a regular check, you mention the current date so that the recipient can deposit the check on the same day. 

Also Read: Financial Management 

How to Use a PDC?

The following are the ways in which you can use a PDC to your advantage:

  • A PDC can help you make staggered payments to any recipient 
  • You can write and submit all checks for your monthly loan payment in one go 
  • This saves you from the hassle of transferring money monthly 
  • This also improves your credibility for the bank that you have full intention of repaying the loan
  • The bank deposits your check on the indicated day for clearing 
  • You can mention your transactions on the first page of PDC to help you keep track of your finances 

Also Read: What is Corporate Finance?

What are the Benefits of PDC?

The following are the benefits of a PDC:

  • The option of a PDC allows the payer to cover the lack of funds between the dates of the issuing and depositing of the check 
  • One can make checks prior to the date and manage the rest of the finances efficiently
  • This method helps many businessmen to run a smooth flow of finances in situations like when the owner is unable to raise funds to pay suppliers
  • It also establishes the guarantee between both parties that the payment will be transacted at a later time 

Also Read: Career in Finance

We hope this has helped you understand the PDC full form and everything related to it. Do you want to know more full forms like this? In the world of short forms, you can rely on our page to know more! Get in touch with our study abroad experts to achieve your international dream today!

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